REPAIRS VERSUS RENOVATIONS
Make sure you get value.
Recently, a long term client of ours came to us with a conundrum – they were considering a move, and were thinking about having their home re-roofed before they listed for sale as a way to entice a buyer. There were a few of the asphalt shingles in need of attention, and a bit of moss on one corner of their garage, but the roof for both the home and the garage was structurally sound and didn’t need a replacement. They had always wondered about installing a metal roof, and were wondering if they should pay for an upgrade before it was necessary to increase the value of the home?
At Canadian Mortgage Professionals, we talk a lot about value as it relates to home ownership. We talk about the value of a home, the value of a mortgage, the value of a great broker (like us!), and we talk about the value of one investment over another, both from a dollars and cents standpoint, but also from a desirable, curb appeal-type of perspective.
First, know the difference.
A repair is restoring something to good working order, with the same value as the broken part. Your five year old electric oven not working? Buy a new element and you’re good to go. That’s a repair.
A renovation, or upgrade, is over and above a repair. Oven not working? Instead of just swapping out the element, how about plumbing in a stainless steel gas range to your kitchen, and replacing all of the other appliances to match? That’s a renovation. Renovation is also often considered modernization.
Second, get expert advice.
If you are not sure if you should go all-in and upgrade your roof to a metal roof rather than just de-moss and replace a few shingles before you list, you need to talk to an expert in evaluating a home – a realtor can give you some great advice about what sort of value a new roof might give you for your home, and can interpret market trends on what people are looking for to buy in your area.
You can weigh that against quotes from a professional roofer to determine if it is worth the price to renovate, or if you should stick to a repair. Check with the Better Business Bureau or ask friends for referrals to good tradespeople and compare prices.
And finally, make sure you can finance your renovations.
If you’re considering renovations as a part of a plan to sell your existing home and purchase a new home, you need to make sure you can afford it and that anything you spend won’t have an impact on your application. There are lots of great options lenders can provide to refinance or renovate, and a mortgage broker can help you navigate how that will work best for you. Give us a call or drop us an email if you want to talk, even if you aren’t ready to fill out paperwork just yet. We’re here to help you navigate.